Suppose ABC Co$.$ has approached Bank of Chicago and wants to borrow $$300,000$ in working capital.

The firm provides the bank with the following financial statements:

Sales: $$4,600,000$

COGs: $$3,500,000$

Operating expense: $$900,000$

Purchase: $3,100,000$

Assets Liability & Equity

Cash $50,000$ A$/$P $166,000$

A$/$R $375,000$ Accrued Expense $37,000$

Inventory $510,000$ Short term Notes payable $($due less than $1$ year$)75,000$

Fixed Asset $925,000$ Current maturity of LT debt $25,000$

Total Asset $1,860,000$ LT Debt $475,000$

Equity $1,082,000$

Total L&E $1,860,000$

$9$

$33.$ What$$s the firm$$s gross profit margin? Show your calculations.

$34.$ What$$s the firm$$s net working capital? Show your calculations.

$35.$ What$$s the firm$$s net working capital needs? Show your calculations.